They are used for power factor correction. The closer the power factor of the device to unity, the less current the device draws for performing the same work. Current is a flow of charges (Electrons), each of which is carrying Energy. So, electrical current is responsible to moving power (from the power source to the device using it for example)
At power factor of unity, the device draws the minimum needed current. The current going is exactly the minimum it takes to get there the power required for the device :
I(current) = P(power) / V(voltage)
At lower power factor, the deice draws more current, so more power comes in. Some of it (how much ? - That is the power factor) is what is actually needed by the device (active power). The rest is coming in, stored inside the device for a while (quarter of the AC cycle), and sent back out into the supply (reactive power). So this power is not used by the device, is not wasted either, but is carried back and forth through the wiring for nothing
This happens with devices that can stores some Energy and discharge it later :
Coils :
In coil the current lags after the voltage in time. That is, when the voltage (Blue) is going up, the current (Red) is still in the down peak. When the voltage allready reached the up peak, the current is still going up. And so on
The Energy is stored in the coil in the form of Magnetic flux, and that is related to the current : The Energy is getting in and stored as the current goes up (towards the positive or negative peak), and discharged out as the current goes down (from the peak to 0)
The power of the coil is :
Power is positive when Energy is getting in, and negative when it is getting out
Capacitors :
In coil the current leads before the voltage in time. That is, when the voltage (Blue) is going up, the current (Red) is allready at the up peak. When the voltage reached the up peak, the current is allredy going down. And so on
The Energy is stored in the capacitor in the form of Electric charges, and that is related to the voltage : The Energy is getting in and stored as the voltage goes up (towards the positive or negative peak), and discharged out as the current goes down (from the peak to 0)
The power of the capacitor is :
Power is positive when Energy is getting in, and negative when it is getting out
Their behavior is opposite, that is when one is discharging the other is charging. If we connect them together, then some of the reactive power (as much as fits in) will go back and forth between them, and only the remaining part go out to the supply line
If we choose them so, that they store the same Energy, then the reactive power will entirely go between them, and not be present on the supplying line. Connecting a capacitor of the matching value to a coil circuit (ballast, motor, ..) is how power factor correction is done : We know what is the reactive power of the ballast/motor/.. that we want to correct, and choose capacitor that stores the same power
As the current through the supply line is lower with power factor correction (without the reactive current going throught there) :
- Lower losses on the line, so some energy savings (allthough the device in the end still uses the same power as before, we save what was otherwise wasted as heating of the wiring)
- Lower voltage drop on the line
- Can connect more of the same devices to one circuit (example 10 Mercury lanterns with PFC instead of 5 without PFC, on one 15Amp circuit)
That is why for the home user (who have at most a handfull of the lanterns on his property, or handfull of Fluorescents inside the house) it does not matter that much, but for those who have 10's or 100's of the lanterns on the same circuit, it does
In addition, the power companies impose requirements on commercial/industrial users to keep the power factor up (corrected), to prevent losses/overloading on their powerlines caused by user's equipment. So along with power factor correction systems for big motors and such, those users choose HPF lighting to comply with this requirement too
Home users dont have lots of the same luminaires or big motors like commercial/industrial users, they have all many different small/relatively small appliances, so the power companies dont bother with them